Was your business lucky enough to get a Paycheck Protection Loan?
If so, I am sure that you appreciated the cash relief.
But it wasn’t free money.
You – and your accountant – should be planning, now, for how to repay it.
The program’s rules have already been amended many times, without notice.
In other words, you must pay attention, to make certain that you will be able to obtain loan forgiveness, by showing that you used the funds for their intended purpose – to maintain payroll.
Certainly, you should ask your bank lender what it will require – but the bank may not yet know either.
Even worse, regulators have already announced audits of borrowers.
In response, many borrowers have already given back their loan proceeds. No one wants a call from a federal inspector, and the bad publicity that will come with it.
One rule even created a safe harbor for giving the money back – and the deadline has already been extended once, to May 14.
With loan rules seemingly being made up day to day, SGRV business lawyer Stanley Jaskiewicz recommends that borrowers plan, now, to keep detailed records of precisely how they used the funds, speaking in a series of interviews with a CBS affiliate news radio show. https://kcbsradio.radio.com/articles/answering-your-questions-about-small-business-aid
To simplify that process, he also recommended keeping all loan funds in their own, separate account.
Please contact Stanley Jaskiewicz directly at 215-241-8866, or firstname.lastname@example.org, if you have questions about your Paycheck Protection Program loan, or other effects of the COVID-19 Stay at Home Orders on your businesses.
In addition to assisting clients with the Paycheck Protection Program, Jaskiewicz has also drafted letters for employees of essential businesses to carry while commuting to work in locations where such travel is otherwise prohibited.
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